Traders were all over the charts today, as a combo of quiet trading environment and a busy trading session ahead both continuation and profit-taking from previous catalysts.
- Japan’s markets out on Labor Thanksgiving Day holiday
Mixed trading environment
With U.S. markets closed on Thanksgiving and Japan’s markets out on a holiday today, Asian session market players mostly caught up to catalysts from the previous sessions.
A draft deal between the EU and Britain, for example, supported risk sentiment and offered relief to market bears.
On the other hand, concerns over the U.S.-China trade war kept other traders in the sidelines.
All eyes will be on the G20 summit next week where POTUS Trump and Chinese counterpart Xi Jinping are expected to meet and possibly reach some sort of understanding over trade conflicts.
Hopes were high after Trump hinted in a presser that:
“China wants to make a deal; if we can make a deal, we will.”
Optimism was shaken earlier today, however, after China rejected the U.S. Trade Representative saying that China is perpetuating “unfair” trade practices in an update of its intellectual property and technology transfer policies investigation.
Commerce Ministry spokesman Gao Feng said that “The U.S side made new groundless accusations against the Chinese side, and China finds it totally unacceptable,” adding that “We hope the United States will drop the words and behaviors that damage bilateral economic and trade relations and adopt a constructive attitude.”
- A SX 200 is up by 1.04% to 5,726.2
- Shanghai index is down by 1.63% to 2,602.301
- Hang Seng is down by 0.30% to 25,941.2
Commodity prices also came in mixed, with gold finding support from doubts over the Fed’s continued hawkishness.
Meanwhile, crude oil benchmarks went back to their trip down the charts after a Thanksgiving break in the U.S. markets. Ouch!
- Gold is up by 0.08% to $1,227.80
- Brent crude oil is down by 0.77% to $62.04
- U.S. WTI is down by 0.82% to $53.37
Major Market Mover(s):
The common currency was well supported over optimism of a Brexit deal between the EU and Britain. Of course, it also didn’t hurt that a slew of manufacturing and services PMI are scheduled over the next couple of hours.
EUR/USD is up by 15 pips (+0.13%) to 1.1415; EUR/JPY is up by 14 pips (+0.11%) to 128.91; EUR/GBP is up by 11 pips (+0.13%) to .8862; EUR/CAD is up by 25 pips (+0.16%) to 1.5059; EUR/NZD is up by 34 pips (+0.20%) to 1.6765, and EUR/AUD is up by 18 pips (+0.11%) to 1.5734.
The low-yielding franc gained pips against some of its counterparts after seeing losses in the last couple of trading sessions.
CHF/JPY is up by 24 pips (+0.21%) to 113.64; USD/CHF is down by 8 pips (-0.08%) to .9937; NZD/CHF is down by 12 pips (-0.17%) to .6766; GBP/CHF is down by 11 pips (-0.09%) to 1.2799, and CAD/CHF is down by 8 pips (-0.11%) to .7532.
Ranges were tight during the Asian session, but that didn’t stop the bears from pouncing on the Kiwi some more over global trade war concerns.
NZD/USD is down by 5 pips (-0.07%) to .6808; NZD/JPY is down by 5 pips (-0.07%) to 76.89; GBP/NZD is up by 21 pips (+0.11%) to 1.8917, and AUD/NZD is up by 13 pips (+0.12%) to 1.0655.
Watch Out For:
- 7:00 am GMT: Germany’s final GDP expected to maintain -0.2% reading in Q3 2018
- 8:15 am GMT: France’s flash manufacturing PMI (51.3 expected, 51.2 previous)
- 8:15 am GMT: France’s flash services PMI (54.9 expected, 55.3 previous)
- 8:30 am GMT: Germany’s flash manufacturing PMI (52.3 expected, 52.2 previous)
- 8:30 am GMT: Germany’s services PMI (54.6 expected, 54.7 previous)
- 9:00 am GMT: Euro Zone’s flash manufacturing PMI (52.0 expected and previous)
- 9:00 am GMT: Euro Zone’s services PMI (53.6 expected, 53.7 previous)